Kossan Rubber Plans to Expand Synthetic Rubber Gloves Manufacturing Capacity
Malaysia:
Kossan
Rubber Industries Bhd, a Malaysia based glove manufacturer, plans to make an
investment of USD106.86 million for setting up of four new production plants in
Selangor. The combined production capacity of the new manufacturing plants is
estimated to be around 18 billion pieces annually. This expansion is expected
to continue for the next four years and would be completed in phases, with each
phase including the completion of one plant. The first plant is expected to
complete by the end of 2017 and would have a production capacity of around 4.5
billion pieces per year. The company has also begun the construction if its
nitrile glove plant in Jalan Meru in Klang located near its existing plant.
This would further add production capacity of about 3 billion pieces per year
upon completion which is scheduled in the mid of 2017. Kossan Rubber Industries
Bhd, a Malaysia based glove manufacture expanded its operations by adding two
new production plants in 2015. Presently, the company has a production capacity
of 22 billion pieces per year out of which 70% is nitrile gloves and remaining
is natural rubber gloves.
TechSci Research depicts that the expansion of glove manufacturing
facility by Kossan Rubber Industries Bhd would create an increased demand for
Nitrile Butadiene Rubber (NBR) in the country. On account of steady growth in
demand for NBR, the overall synthetic rubber market is projected to exhibit
steady growth over the next five years.
According to TechSci Research report “China Synthetic Rubber Market Forecast and Opportunities, 2020”,
the synthetic rubber market in China is
projected to cross US$ 12 billion by 2020. This growth is anticipated on
the back of continuously rising production output of the domestic tyre industry
along with increasing demand for synthetic rubber from various other
industries, such as polymer modification, gloves, footwear, asphalt
modification and adhesives.